For the Quarter Ending March 2025
North America
In Q1 2025, the Polyacrylate Rubber (ACM) market in the USA experienced a mild downward trend. Prices remained stable in January, supported by steady demand from the automotive sector and balanced supply conditions. The market showed resilience despite global freight challenges, with adequate raw material availability and stable production keeping pricing steady.
February brought a shift as demand from the automotive sector declined by 2.3%, following the imposition of additional tariffs on imports from Mexico and Canada. These trade measures raised cost pressures and disrupted procurement, causing uncertainty among manufacturers and softening demand. Supply remained sufficient, but concerns over cross-border trade impacted market sentiment.
In March, prices dropped by approximately 3%, driven by easing raw material costs and continued weakness in downstream demand. While electric vehicle production showed some recovery, overall automotive activity stayed subdued. For the quarter, the ACM market in North America, particularly the USA, reflected a cautious tone, marked by trade challenges, moderate demand, and declining input costs across the APAC-influenced supply chain.
APAC
In Q1 2025, polyacrylate rubber (ACM) prices in China displayed fluctuations, influenced by demand from the automotive sector and supply chain dynamics within the APAC region. In January, prices remained stable due to steady demand, particularly from New Energy Vehicles (NEVs). Despite a decline in vehicle sales and weaker manufacturing activity, supply was consistent, and minimal global disruptions kept prices stable.
February saw a 1.5% increase in prices, driven by a recovery in the automotive sector and rising raw material costs. Vehicle production and NEV sales supported this price uptick. This trend reflected broader recovery in the APAC region, with industrial activity and demand strengthening.
However, March experienced a 5.5% price drop due to a fall in raw material costs, especially acrylic acid. Although the NEV sector showed strong growth, overall demand was moderate, and the supply-demand balance led to downward pressure on prices. Overall, Q1 2025 ended with a slight decline in prices following a period of fluctuation.
Europe
In Q1 2025, the Polyacrylate Rubber (ACM) market in Germany witnessed a soft price trend, primarily influenced by weakened demand from the automotive sector. In January, automotive sales declined by 2.8%, limiting downstream consumption of ACM despite stable supply and production levels. Prices remained largely unchanged as market participants adopted a wait-and-see approach amid uncertain economic conditions.
February saw a sharper contraction, with automotive sales plummeting by 6.4%. The downturn significantly impacted demand for ACM used in engine components and seals, pushing prices down slightly. While raw material availability remained steady, suppliers began facing inventory buildup, prompting mild price corrections to sustain offtake.
In March, automotive sales dropped by another 3.9%, extending the bearish sentiment in the ACM market. Despite moderate demand from replacement markets, overall consumption remained sluggish. Manufacturers adjusted pricing strategies, accordingly, leading to an estimated 2.5–3% price decline for the quarter. The European ACM market, especially in Germany, remained under pressure throughout Q1 due to persistent weakness in automotive production.
